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Get heat pumps and solar panels before the VAT hike

Maximilian Schwerdtfeger
Written By
Published on 2 November 2026
  • The cost of heat pumps, solar panels, and solar batteries will increase by 5% on 1st April 2027
  • The Chancellor John Healey didn’t extend the 0% VAT for them at the Budget
  • Solar and electrification are the best ways to get your bills down long term
Solar panels on a roof
Solar panels will get more expensive on 1st April 2027

If you’re looking to futureproof your energy bills (and who isn’t?) then now is the time to act because the best tools available, solar panels and heat pumps, will become 5% more expensive on 1st April 2027.

Solar panels, batteries, and heat pumps costs will increase because they will all be subject to 5% after Chancellor John Healey didn’t extend the 0% rate beyond the current deadline of the 31st March.

Property sizeTwo-bedroom houseThree-bedroom houseFour-bedroom houseFive-bedroom house
Air source heat pump size5kW7kW11kW14kW
Air source heat pump cost after 1st April 2027 with 5% VAT£8,400£12,600£14,700£17,850
Ground source heat pump size4kW8kW11kW13kW
Ground source heat pump cost after 1st April 2027 with 5% VAT£12,075£15,750£19,425£22,050
Property size1-2 bedrooms3 bedrooms4 bedrooms
Annual electricity usage 1,800 kWh2,700 kWh4,100 kWh
Number of panels61014
Cost of installation after 1st April 2027 with 5% VAT£3,675£6,132£8,578
Battery capacityAverage battery price after 1st April 2027 at 5% VAT
4kWh£3,150 – £4,200
5kWh£4,200 – £5,250
10kWh£8,925 – £10,500
12kWh£11,340 – £12,600
16kWh£12,600 – £16,800

Written By

Maximilian Schwerdtfeger

Max joined The Eco Experts as content manager in February 2024 and became deputy editor in 2025. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.

He has represented The Eco Experts on national television several times, including the BBC’s Sunday Morning Live and ITV Tonight .

In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.

He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.

Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.

As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.

His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.

Max lives in South London and is an avid reader of books on modern history. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.

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